Question 1

What is data mining? Describe the two kinds of data mining. How can data mining be used to invade the privacy of individuals, given the large amount of data that is collected and stored electronically on people in their everyday transactions?

Accepted Answer

Data mining is a new form of information processing which discovers unknown patterns and relationships in data. It is a very promising tool that can be used to help managers to dig out from under the avalanche of data that companies collect every day. Data mining transforms large bodies of raw data into meaningful information that can be used for business decision making. The data typically comes from a data warehouse, which stores huge amounts of data that have been prepared for data mining analysis by being cleaned of errors and redundancy. There are two general approaches to data mining: (1)supervised and (2)unsupervised. Supervised data mining looks and tests for specific patterns and relationships in a data set that have been specified by managers. In contrast, unsupervised data mining attempts to uncover whatever patterns and relationships it can find in a data set. It specifically looks for four general kinds of data patterns: (1)association/affinity patterns (which occur when two or more database elements tend to occur together in a significant way), (2)sequence patterns (which occur when two or more database elements occur together in a significant pattern but with one of the elements preceding the other), (3)predictive patterns (which identify database elements that are different), and (4)data clusters (which occur when three or more database elements occur together, or cluster, in a significant way). The preceding portion of this answer was drawn directly from the text. Students may take a variety of approaches to explaining how data mining could potentially be used to invade the privacy of individuals, given the large amount of data that is collected and stored electronically on people in their everyday transactions. Better answers will specify the types of data collected on individuals, the sources of that information, and how companies might use the techniques of data mining (especially unsupervised data mining)to identify relationships that could allow those companies to know more about individuals than those individuals consciously know about themselves. For example, through the use of such information, companies could develop marketing approaches that might be significantly more effective and much less obvious than traditional approaches. In this way, some might argue, the free choice of consumers could be violated. Obviously, there are numerous directions in which students could go with this answer. The key to a good answer is anchoring realistic speculation about invasion of privacy in the techniques and potential of data mining as described in the text.

Question 2

Although firewalls can protect personal computers and network services connected to the corporate network, people away from their offices who interact with their company networks via the Internet face a safety risk. Which of the following technologies has proven to be a viable solution to this problem?

Accepted Answer

A)  safe software for logic (SSL) encryption
B)  firewall reengineering
C)  secure sockets layer (SSL) encryption
D)  secure logistical LAN (SLL) encryption
E)  virus protected networks (VPNs)  C

Question 3

Jupiter Communications An entrepreneur developed Kibu.com as an online fashion magazine for girls between the ages of 13 and 18. The messages from Kibu's advertisers were tailored for and intriguing to a teenage audience. Revenue came from companies that sponsored various channels and features on the site, such as the Fashion Channel. Kibu had a loyalty program, the kPoints xChange, which gave site visitors an incentive to communicate with the site and its sponsors. Each time they did, they earned points that could be exchanged for merchandise such as CDs, movie tickets, or beaded jewelry. Visitors who filled out surveys could win one of the 10,000 Kibu Boxes. Box recipients got still more points if they went to the Box Channel and filled out forms telling one to three of the participating companies how they liked the products inside. By September 2000, however, the site closed, and its founders returned the remaining start-up capital to investors. Refer to Jupiter Communications. The information Kibu.com collects would be stored in ____.

Accepted Answer

A)  large mainframes
B)  data warehouses
C)  information mines
D)  knowledge adjacencies
E)  information processing servers B

Question 4

The first company to gain first-mover advantage typically benefits from higher profits and larger market share.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following statements about intranets is true?

Accepted Answer

A)  Intranets require users to build a completely new network.
B)  Intranets are Web-based.
C)  The software required to set up an intranet is expensive.
D)  Intranets are difficult to use.
E)  All of these statements about intranets are true.

Question 6

Jupiter Communications An entrepreneur developed Kibu.com as an online fashion magazine for girls between the ages of 13 and 18. The messages from Kibu's advertisers were tailored for and intriguing to a teenage audience. Revenue came from companies that sponsored various channels and features on the site, such as the Fashion Channel. Kibu had a loyalty program, the kPoints xChange, which gave site visitors an incentive to communicate with the site and its sponsors. Each time they did, they earned points that could be exchanged for merchandise such as CDs, movie tickets, or beaded jewelry. Visitors who filled out surveys could win one of the 10,000 Kibu Boxes. Box recipients got still more points if they went to the Box Channel and filled out forms telling one to three of the participating companies how they liked the products inside. By September 2000, however, the site closed, and its founders returned the remaining start-up capital to investors. Refer to Jupiter Communications. The developer of Kibu and his investors created the first company to offer both content and chat rooms aimed at girls between the ages of 13 and 18. They hoped this would give them a ____.

Accepted Answer

A)  first-mover advantage
B)  market aggregation
C)  comparative promotional point
D)  differential benefit
E)  synergistic benefit

Question 7

The two basic methods of capturing information are continuous and periodic.

Accepted Answer

A) True 
 B)False

Question 8

Pioneering differential refers to the strategic advantage that companies earn by being the first in an industry to use new information technology to substantially lower costs or to differentiate a product or service from competitors.

Accepted Answer

A) True 
 B)False

Question 9

What is a first-mover advantage?

Accepted Answer

The answer of What is a first-mover advantage?...

Question 10

A master brewer knows the exact ingredients to add to make a dark beer, a lager, or an ale. He understands the nuances of the fermentation process and when a batch reaches perfection. How can technology capture this specialized knowledge?

Accepted Answer

The answer of A master brewer knows the exact ingredients...

Question 11

Raw data contain useful information that communicate a clear and readily understandable message to the person for which the data were gathered.

Accepted Answer

A) True 
 B)False

Question 12

The two basic methods of capturing information are ____.

Accepted Answer

A)  systematic and unsystematic
B)  planned and unplanned
C)  continuous and intermittent
D)  functional and hierarchical
E)  manual and electronic

Question 13

The goal of an executive information system is to provide information that is accurate, complete, relevant and ____.

Accepted Answer

A)  rich
B)  complex
C)  timely
D)  expedient

Question 14

Three kinds of information technology are used by executives, managers, and workers inside the company to access and share information. They are ____.

Accepted Answer

A)  executive information systems, portals, and intranets
B)  local area networks, extranets, and management information systems
C)  intranets, local area networks, and portals
D)  expert systems, decision support system, and virtual private networks
E)  Internet-accesses, SSL encryption, and intranets

Question 15

WWYD Delta Airlines lose bags. They need to handle thousands of bags per day and then rush them to connecting planes or baggage carousels. The challenging logistics, however, don't make up for the impact of delays on passengers. In all, 31 million bags are delivered late worldwide each year. In the U.S., seven people per 1,000 passengers, or roughly one per plane, don't get their luggage on time, and they file 7.5 million mishandled baggage reports a year. Over the last decade, the three largest airlines, American, United, and Delta, have been the worst. Delta is 30 percent worse compared to the best airlines. Second, 28 percent more bags are delayed today compared to a decade ago. No wonder passengers are frustrated, especially when charged a handling fee for checked bags. Nothing like paying extra to have the airline lose your bags, especially when Delta brings in $952 million a year in bag fees! Passengers are beginning to realize that bag fees bring in much more than the cost to deliver bags, so they have every right to expect Delta to do a better job delivering bags. After all, if Amazon can send emails and texts notifying customers when their orders leave the warehouse, arrive at their local airports, and are delivered to their homes, then why can't Delta do the same thing with luggage that's supposed to never leave the airport? Delta Airline's historically poor job of handling baggage is clearly related to Delta trailing its competitors in the use of information technology to track and manage baggage handling. While Delta catches up with its competitors in terms of high-tech baggage handling systems, it is the first airline to offer real-time tracking of passengers' bags. Not unlike tracking an Amazon shipment, Delta's real-time tracking allow passengers to know precisely where their bags are from check-in, to the flight on which they're loaded, to the baggage carousel where they're hopefully waiting. Passengers receive a tracking number for each bag and can track its whereabouts using their smartphones. Should a bag be delayed, that tracking number is easily entered into baggage claim forms on Delta's website. The challenge for airlines such as Delta, which have begun or are considering self-tagging systems, is not capturing information or processing information, but protecting information. All airlines use bar codes on boarding passes, either printed from your home computer or from the check-in kiosk at the airport. An increasing number of airlines, including Delta, now send electronic boarding passes containing bar codes via email to passengers' smartphones to be scanned in place of bar codes on printed boarding passes. The U.S. Transportation Security Administration (TSA)says that paperless boarding passes are more secure "and will prevent fraudulent paper boarding passes that could be created and printed at home." Why? Because instead of physically examining a printed copy of a boarding pass, TSA agents will scan the bar code on the electronic boarding pass to ensure its validity at the checkpoint. Passengers will still be required to show photo identification so officers can validate that the name on the boarding pass matches the name on the ID. Refer to WWYD Delta. When a TSA employee scans an electronic boarding pass, it is considered:

Accepted Answer

A)  manual capture of information
B)  electronic conversion of information
C)  supervised data mining
D)  electronic capture of information
E)  data mining

Question 16

Unlike an executive information system, a decision support system (DSS)____.

Accepted Answer

A)  speeds up and simplifies the acquisition of information
B)  does not process data
C)  helps managers understand problems and potential solutions by acquiring and analyzing information with sophisticated models
D)  can be used to replace all managerial decision making
E)  removes decision-making bottlenecks by creating a problem organization table

Question 17

WWYD Delta Airlines lose bags. They need to handle thousands of bags per day and then rush them to connecting planes or baggage carousels. The challenging logistics, however, don't make up for the impact of delays on passengers. In all, 31 million bags are delivered late worldwide each year. In the U.S., seven people per 1,000 passengers, or roughly one per plane, don't get their luggage on time, and they file 7.5 million mishandled baggage reports a year. Over the last decade, the three largest airlines, American, United, and Delta, have been the worst. Delta is 30 percent worse compared to the best airlines. Second, 28 percent more bags are delayed today compared to a decade ago. No wonder passengers are frustrated, especially when charged a handling fee for checked bags. Nothing like paying extra to have the airline lose your bags, especially when Delta brings in $952 million a year in bag fees! Passengers are beginning to realize that bag fees bring in much more than the cost to deliver bags, so they have every right to expect Delta to do a better job delivering bags. After all, if Amazon can send emails and texts notifying customers when their orders leave the warehouse, arrive at their local airports, and are delivered to their homes, then why can't Delta do the same thing with luggage that's supposed to never leave the airport? Delta Airline's historically poor job of handling baggage is clearly related to Delta trailing its competitors in the use of information technology to track and manage baggage handling. While Delta catches up with its competitors in terms of high-tech baggage handling systems, it is the first airline to offer real-time tracking of passengers' bags. Not unlike tracking an Amazon shipment, Delta's real-time tracking allow passengers to know precisely where their bags are from check-in, to the flight on which they're loaded, to the baggage carousel where they're hopefully waiting. Passengers receive a tracking number for each bag and can track its whereabouts using their smartphones. Should a bag be delayed, that tracking number is easily entered into baggage claim forms on Delta's website. The challenge for airlines such as Delta, which have begun or are considering self-tagging systems, is not capturing information or processing information, but protecting information. All airlines use bar codes on boarding passes, either printed from your home computer or from the check-in kiosk at the airport. An increasing number of airlines, including Delta, now send electronic boarding passes containing bar codes via email to passengers' smartphones to be scanned in place of bar codes on printed boarding passes. The U.S. Transportation Security Administration (TSA)says that paperless boarding passes are more secure "and will prevent fraudulent paper boarding passes that could be created and printed at home." Why? Because instead of physically examining a printed copy of a boarding pass, TSA agents will scan the bar code on the electronic boarding pass to ensure its validity at the checkpoint. Passengers will still be required to show photo identification so officers can validate that the name on the boarding pass matches the name on the ID. Refer to WWYD Delta. Delta's real-time tracking of passengers' checked baggage is an example of:

Accepted Answer

A)  raw data
B)  information
C)  first-mover advantage
D)  Moore's law
E)  an expert system

Question 18

According to the resource-based view of information technology, sustainable competitive advantage occurs when information technology adds value, is different across firms, and is difficult to create or acquire.

Accepted Answer

A) True 
 B)False

Question 19

According to ____, the cost of computing will drop by 50 percent as computer-processing power doubles every 18 months.

Accepted Answer

A)  Moore's law
B)  Gordon's law
C)  the Peter principle
D)  the rule of e-commerce
E)  Gresham's Law

Question 20

Which of the following statements about firewalls is true?

Accepted Answer

A)  Firewalls are a way to protect data.
B)  Firewalls can be in the form of hardware or software.
C)  Firewalls prevent unauthorized use of data.
D)  Firewalls sit between the computers in an internal organizational network and outside networks.
E)  All of these statements about firewalls are true.

Exam 15: Managing Information

What is data mining? Describe the two kinds of data mining. How can data mining be used to invade the privacy of individuals, given the large amount of data that is collected and stored electronically on people in their everyday transactions?

The first company to gain first-mover advantage typically benefits from higher profits and larger market share.

Which of the following statements about intranets is true?

The two basic methods of capturing information are continuous and periodic.

Pioneering differential refers to the strategic advantage that companies earn by being the first in an industry to use new information technology to substantially lower costs or to differentiate a product or service from competitors.

What is a first-mover advantage?

A master brewer knows the exact ingredients to add to make a dark beer, a lager, or an ale. He understands the nuances of the fermentation process and when a batch reaches perfection. How can technology capture this specialized knowledge?

Raw data contain useful information that communicate a clear and readily understandable message to the person for which the data were gathered.

The two basic methods of capturing information are ____.

The goal of an executive information system is to provide information that is accurate, complete, relevant and ____.

Three kinds of information technology are used by executives, managers, and workers inside the company to access and share information. They are ____.

Unlike an executive information system, a decision support system (DSS) ____.

According to the resource-based view of information technology, sustainable competitive advantage occurs when information technology adds value, is different across firms, and is difficult to create or acquire.

According to ____, the cost of computing will drop by 50 percent as computer-processing power doubles every 18 months.

Which of the following statements about firewalls is true?